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Analysis of Core Resources and Competencies according to Hamel and Prahalad 2,49 €
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Analysis of Core Resources and Competencies according to Hamel and Prahalad
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We will delve into the crucial importance of identifying, evaluating, and leveraging an organization's core resources and competencies to achieve sustainable competitive advantage. We will examine in detail the various methods and tools proposed by Hamel and Prahalad for conducting a thorough analy...

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  • 21 mars 2024
  • 2
  • 2023/2024
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Analysis of fundamental resources and skills according to Hamel and Prahalad (internal
feedback on resources and skills)

The two researchers were interested in what constituted the “essential technical and
organizational skills for an organization to produce competitive advantage” through its use of
its core resources and skills. They identify four essential characteristics to identify them as
such: they must be distinct by their rarity, their difficult imitation, the absence of substitutes
and the absence of transfers. It is a great tool and very useful from an internal diagnostic
perspective.

By competence we mean the optimized way of involving resources in the pursuit of the given
vision. For the institution, it must distinguish know-how that it already has and that it has
learned to use by integrating it into its methods.

Likewise, what distinguishes and strengthens the position of the company on the market is
fundamental. The pursuit of a new opportunity must be seized or a threat avoided.
Competence also promotes cost reduction and improved customer value. The company is not
a sharer; it must hold this added value in a sufficiently selfish proportion.

Understanding the market and the environment in company strategy

By gauging its ability to apply its resources and skills, the company can know if it has the
means to modify and quickly start new activities, if it can try partnerships with several players
and/or possibly enter on a market.

An important contribution concerns the part of collective learning to promote better
coordination between employees and promote their know-how. It is a continuous and
demanding phenomenon that requires a lot of time and commitment, questioning to improve
and protecting to achieve the state of distinctive status for the company.

On the one hand, there are skills at an individual level but also at a collective level. For the
first, the qualified individual understands and interacts with the environment to resolve the
financial difficulties presented to him. Competence has a value of knowledge, know-how but
also know-how and this last point brings us to the collective configuration.

The social aspect and the group are also essential for the company when we design the
organization as a whole. It is this ability to be able to use versatility but also to compensate for
possible absences or shortcomings. Competitive advantage is reflected in collective skills
when they combine technical expertise, managerial dynamism and cross-functional
knowledge. For specific points, this evolves with the positions of the company and the
function performed. Human resources management is also a somewhat neglected instrument
but which allows for loyalty and the perpetuation of good principles to follow. The transversal
involves a study of internal tools to promote new goods and services by requiring reinforced
quality as well as a healthy relationship with suppliers upstream and customers downstream.

To succeed, the company has more interest in acting for the transformation of the
environment rather than trying to comply with it. Indeed, for those who are favorable to it, the
company must focus on the key success factors by developing astute management of its
resources policy. We speak of strategic intention which has two returns. It designates the
intention to create the market environment most favorable to the company. The environment

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